• GBP/USD gained traction for the second consecutive session on Tuesday.
  • A modest USD strength seemed to cap the upside amid fresh Brexit jitters.
  • Bears need to wait for a sustained break below ascending channel support.

The GBP/USD pair gained traction for the second consecutive session on Tuesday and climbed to 1.3800 neighbourhood during the early European session, albeit lacked follow-through. The uptick could be solely attributed to some cross-driven strength stemming from a fresh leg down in the EUR/GBP cross. That said, a modest US dollar strength kept a lid on any further gains for the major amid fresh Brexit jitters.

From a technical perspective, the GBP/USD pair has been showing some resilience near the 200-hour SMA. This is closely followed by the lower boundary of an ascending channel extending from the vicinity of the 1.3400 mark, or September swing lows. The latter, currently around mid-1.3700s, should now act as a key pivotal point for short-term traders. A convincing break below will set the stage for an extension of the recent rejection slide from the very important 200-day SMA.

GBP/USD 1-hour chart

fxsoriginal

The GBP/USD pair might then accelerate the corrective decline towards testing the 1.3700 round-figure mark. The next relevant support is pegged near the 1.3675-70 horizontal zone, which if broken decisively would turn the pair vulnerable. Meanwhile, technical indicators on the daily chart – though have been losing positive traction – are still holding comfortably in the bullish territory. This, in turn, warrants caution before placing aggressive bearish bets around the GBP/USD pair.

On the flip side, any meaningful positive move beyond the 1.3800 mark might continue to confront stiff resistance near the 1.3830-35 confluence region. This comprises 200-day SMA and a downward sloping trend-line extending from late July. Some follow-through buying has the potential to lift the GBP/USD pair further towards challenging the trend-channel hurdle, currently around the 1.3885 region. A sustained strength beyond will be seen as a fresh trigger for bullish traders.

GBP/USD daily chart

fxsoriginal

Technical levels to watch

GBP/USD

Overview
Today last price 1.3784
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.3768
 
Trends
Daily SMA20 1.3648
Daily SMA50 1.3711
Daily SMA100 1.3796
Daily SMA200 1.3851
 
Levels
Previous Daily High 1.3792
Previous Daily Low 1.3742
Previous Weekly High 1.3834
Previous Weekly Low 1.3709
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3773
Daily Fibonacci 61.8% 1.3761
Daily Pivot Point S1 1.3743
Daily Pivot Point S2 1.3717
Daily Pivot Point S3 1.3693
Daily Pivot Point R1 1.3793
Daily Pivot Point R2 1.3817
Daily Pivot Point R3 1.3843

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD holding above 0.6900 but not for long

AUD/USD holding above 0.6900 but not for long

The AUD/USD pair eased on Monday and trades a handful of pips above the 0.6900 mark. Investors remain cautious amid recession fears and a scarce macroeconomic calendar. Additional clues on economic growth and inflation are scheduled for later this week.

AUD/USD News

EUR/USD up on Monday, but unable to recapture 1.0600

EUR/USD up on Monday, but unable to recapture 1.0600

Bulls are still losing the battle around the 1.0600, as EUR/USD pulled back after reaching a two-week high of 1.0614. Market players eye inflation-related figures and policymakers' words on monetary policy within the ECB Central Banking Forum.

EUR/USD News

Gold bears gearing up for a breakout

Gold bears gearing up for a breakout

XAUUSD is slowly gaining bearish traction, with sellers now aligned at lower levels. Gold advanced throughout the first half of the day, but trimmed gains and trades near a daily low of $1,820.63, as the dollar gathered momentum ahead of the US opening. 

Gold News

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price shows optimism to start the final week of June. The potential for a new bull run is beginning to materialize. LUNA price sees an uptick in social media commentary.
 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures